Tobacco Commission blames US ban for high rejection

Tobacco market regulator, Tobacco Commission (TC), has partly attributed a recent rise in tobacco rejection rate on the market to a tobacco export ban to the United States (US) market imposed last year.

TC Chief Executive Officer, Kaisi Sadala, said some buyers are yet to ship tobacco which was bought during the previously season.

In November 2019, The US Customs and Border Protection (CBP) issued an order that all tobacco deemed to have been produced using child and forced labour are denied entry into the country.

Currently, only Alliance One International is exporting local tobacco to the US.

Figures from market operator, AHL Group, indicates that no-sale rejection for tobacco on the auction market stood at 53 percent in week 12 of sales compared to 23 percent at the same time last season.

During the week under review, Mzuzu Auction Floors recorded a 82.9 percent no-sale rejection.

TIMESMW